Network Effects and The Adoption of New Technology : Evidence From The U. S. Telecommunications Industry  

Oleh:

Majumdar, Sumit K. ; Venkataraman, S.

Jenis: Article from Journal - ilmiah internasional
Dalam koleksi: Strategic Management Journal vol. 19 no. 11 (1998), page 1045-1062.
Topik: network; network effects; technology adoption strategy; telecommunications industry

Ketersediaan

Perpustakaan Pusat (Semanggi) Nomor Panggil: SS30.2 Non-tandon: 1 (dapat dipinjam: 0) Tandon: tidak ada

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Isi artikel

This paper examines variations in the adoption of new technology by firms operating in a network - based industry : telecommunications. These variations are explained as a function of three networks effects : the first - is the conversion effects, driven by operations - related increasing returns to scale the second - is the consumption effect, driven by demand - side increasing returns to scale the third - is an imitiative effect. We expect the conversion effect to be felt more strongly during earlier phases of a technology's evolution, while a strong consumption effect is felt throughout. The imitative effect is also expected to be felt throughout. These hypotheses are examined with respect to electronic swithching adoption in the local operating sector of the U. S. telecommunications industry. An analysis of the variations in adoption levels of the 40 largest firms over a period lasting from 1973 to 1987 supports our expectations, except for the imitative effect.

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